On June 1, 2010, Bere Co. paid $4,500 to Sting Insurance Company for a one-year insurance policy. Bere Co. has a December 31 fiscal year end and adjusts accounts annually. Complete the following for Bere Co.


1.Prepare the June 1, 2010, journal entry.


2.Calculate the amount of insurance that expired during 2010 and the unexpired cost at December 31, 2010.

Expired during 2010: $

Unexpired cost at December 31, 2010: $


3.Prepare the adjusting entry required at December 31, 2010.

This is a duplicate post and I answered this problem in the other post.

How to determine amount of wages paid during the year?

Use your Wages Expense account plus beginning Wages Payable balance minus your ending Wages Payable balance.